U.S. stocks were closed on Monday, for the U.S. Labor Day holiday.
U.S. stocks closed lower on Friday, 2nd September 2022, after rising earlier in the session as a U.S. jobs report showed the labor market may be starting to loosen, but then concerns about Europe’s gas crisis caused the rally to reverse.
U.S. stocks opened sharply higher after data showed that U.S. jobs rose more strongly than expected in August, but the unemployment rate climbed to 3.7%, easing some concerns that the Federal Reserve is being overly aggressive in raising interest rates as it tries to curb high inflation.
The report showed that while job gains were higher than expected, average hourly earnings rose only 0.3%, compared with an expected 0.4% gain, while the unemployment rate rose to 3.7% from a pre-epidemic low of 3.5%, indicating that the Fed’s front-end efforts to raise interest rates are starting to work.
Employment data is considered important to the Fed’s consideration of rate hikes as it tries to get inflation, which is at a 40-year high, to pull back to its 2% target.
Attention now turns to the August consumer price report, due out in the middle of this month, which is the last major data to come out before the Fed’s 20th – 21st September policy meeting.
Stocks fell in mid-August after hitting a four-month high on concerns about aggressive policy tightening.
The S&P 500 has fallen about 7% since the day before Fed Chairman Jerome Powell made a hawkish statement about rate hikes last week. His views have since been echoed by other policymakers.
(Dow 30, 1-hour chart)
The Dow is focused on the 31265-line today. If the Dow runs steadily above the 31265-line, then it will pay attention to the suppression strength of the two positions of 31661 and 31995. If the Dow is running steadily below the 31265-line, it will pay attention to the support strength of the two positions of 31000 and 30608.
Hong Kong Stocks
U.S. stocks were closed overnight, and European stocks closed lower collectively.
Hong Kong stocks rallied higher today, with the Hang Seng Index (HSI) up 0.19%, the Hang Seng China Enterprises Index (HSCEI) up 0.08%, and the Hang Seng TECH Index (HSTECH) up 0.43%.
On the market, the recent downturn in large technology stocks generally rose, Baidu, Inc. (9888.HK), Kuaishou Technology (1024.HK), Meituan (3690.HK) rose more than 1%, JD.com, Inc. (9618.HK), Alibaba Group Holding Limited (9988.HK), Xiaomi Corporation (1810.HK), and Tencent Holdings Limited (0700.HK) are up.
Yesterday’s plunge in auto stocks rebounded significantly, while education stocks, oil stocks, lithium battery stocks, sporting goods stocks, photovoltaic stocks, etc. Were all up.
Online education stocks, Koolearn Technology Holding Limited (1797.HK) rose more than 7%. The share price return back above HK$ 30, and the market value return back to HK$ 30 billion, yesterday’s closing down nearly 16%.
On the other hand, yesterday’s strong gas stocks trend divergence, while most of the home appliances stocks, cell phone concept stocks fell.
(HK50, 1-hour chart)
HK50 focuses on the 19517-line today. If HK50 can run stably above the 19517-line, then focus on the suppression strength of the 20467 and 21450 positions. If the HK50 runs below the 19517-line, then pay attention to the support strength of the 18606 and 17535 positions.
FTSE China A50 Index
(FTSE China A50, 1-hour chart)
FTSE China A50 focuses on the 13157-line today. If the A50 runs steadily below the 13157-line, it will pay attention to the support strength of the two positions of 12945 and 12733. If the A50 runs above the 13157-line, it will open up further upward space. At that time, pay attention to the two positions of 13544 and 13887.
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